# kaal:claim:4033886-021

**Claim.** Principal to principal markets are generally not considered observable because little information about their transactions is publicly available, which pushes assets priced there out of the observable input levels.

**Type.** mechanism  **Support.** evidenced

**Holds when.**

- principal to principal markets
- fair value input hierarchy

**Source quote.**

> There is often little information about principal-to-principal transactions publicly available, and as such the markets are generally not considered observable.81

**From.** Wulf A. Kaal, Samuel Evans, Hayley Howe, *Digital Asset Valuation* (2022), III.3 Discounted Cash Flow Model, page 20

**Cite as.** Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

**Verify.** sha256 of source PDF `52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202022%20-%20Digital%20Asset%20Valuation.pdf

**Failure mode.** unobservable market inputs  (family: valuation-and-pricing-failure)

**Topics.** institutional-design

**Keywords.** observability, principal-to-principal, input-hierarchy, digital-assets

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.